A Delhi consumer court has held MG Motor India liable for selling a defective car and failing to provide its warranty, and directed the company to refund the full price of the car, which was over Rs 18 lakh, along with compensation and legal costs of Rs 4 lakh.
What Was the Dispute?
The case was filed by a Delhi resident who bought an MG ZS Astor for Rs 18,23,228 in October 2022. He alleged that within months the car had several problems, including faulty Tyre Pressure Monitoring Sensors (TPMS) and an issue with the Electronic Steering Column Lock (ESCL).
He said that even though the car was under warranty, he was still charged Rs 3,000 to replace the faulty TPMS units.
Later, while driving to Gangotri Dham in Uttarakhand in June 2023, the car showed an ESCL fault. On the advice of MG's customer care, he drove the car towards the company's Dehradun service centre, but on the way, the steering allegedly jammed and the car met with an accident.
He further argued that the company sent a technician only after 10 hours and never properly looked into what was actually wrong with the car.
However, MG Motor said it didn't know about the steering issue and claimed the owner hadn't allowed a proper inspection of the car. It also denied there was any manufacturing defect.
The dealer, MG Motor Gitansh Motors, said that any manufacturing defect in the car was the company's responsibility and not its own.
What Did the Commission Observe?
The bench comprising Divya Jyoti Jaipuriar (President) and Ashwani Kumar Mehta (Member) was not convinced by MG's defence. It found that emails from MG's own Dehradun workshop only asked for permission to start an insurance claim for repairs — not for a 'thorough examination' as the company had claimed.
'Mechanical and electronic failures cannot be attributed to driving style of the driver,' the commission added.
The commission said that TPMS and ESCL are mechanical and electronic failure and driver cannot be responsible for it.
Holding MG Motor responsible, the commission said the company has 'failed not only in addressing the defects in the vehicle... but has also failed to honour the warranty and road side assistance services,' and concluded that the vehicle had manufacturing defects.
The commission ordered MG Motor to refund Rs 18,23,228 with 7 per cent annual interest from the date the complaint was filed, and pay an extra Rs 4 lakh combined for compensation and legal costs, both within four weeks. If MG doesn't pay on time, the amount will carry 9 per cent annual interest until it's paid.
The commission also noted that the car has been sitting unrepaired at MG's Dehradun workshop since June 2023 which is approximately three years and is likely beyond repair by now, so fixing and returning it wasn't a practical option. Instead, the car will stay with MG Motor, which can dispose of it as it wishes, while the owner must help with cancelling or transferring its registration. The dealer, MG Motor Gitansh Motors, was not held liable, since the commission found it had no role in the car's manufacturing defects.
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